The narrative surrounding the cryptocurrency market in 2025 is under scrutiny, particularly from Jeff Dorman, the chief investment officer at digital asset management firm Arca. In a recent post on X, Dorman puts a spotlight on the distinction between a genuine bull market and the current market dynamics, suggesting that only a limited number of significant tokens are driving the enthusiasm within the industry.
Dorman’s analysis highlights that a staggering “more than 75% of the tokens in our coverage universe are negative year-to-date,” with over half of these down by 40% or more this year. This decline raises concerns about the true health of the market and the sustainability of the current rally.
Interestingly, Dorman points out that some of the few tokens registering gains are often regarded as “complete nonsense coins” and memecoins, stating that they don’t attract serious investor interest. In contrast, well-established cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and others have shown more resilient performance, gaining between 20% and 40% this year. Dorman compares this scenario to the traditional finance landscape, where large-cap stocks can thrive even as smaller stocks falter, stating, “This is the TradFi equivalent of the DJIA and GameStop having a good year, while small caps are -40%.”
While the concentration of gains among high-profile tokens may seem promising, Dorman emphasizes that such uneven performance could lead to a healthier market in the long run. He argues that broad rallies tend to create a sense of complacency among investors, while a more selective approach compels them to evaluate projects more critically. “Nothing good comes from an everything rally, because no one learns anything,” he states. This introspection forces investors to explore the fundamentals behind weaker projects and prompts the essential question: “How are you doing this?”
In Dorman’s view, the investment approach in 2025 differs markedly from past cycles; investors are advised to favor projects with concrete business frameworks rather than relying on momentum in altcoins. He asserts, “Own stocks and tokens that actually make money & buy back their own tokens with the profits,” marking a departure from the past strategy of investing in various tokens indiscriminately in hopes of quick returns.
Within this nuanced environment, certain categories of assets have emerged as winners. Dorman identifies tokens linked to exchange-traded funds or digital asset trusts, like BTC, ETH, and SOL, as well as crypto-centric equities, including prominent firms such as Circle, Galaxy Digital, Coinbase, and reputable miners like Iris Energy and TeraWulf.
He also mentions what he refers to as “U.S. government coins”—specifically XRP and Chainlink’s LINK—as noteworthy players in the current market landscape. Additionally, revenue-generating tokens that provide value back to their holders, such as Hyperliquid’s HYPE and Maple Finance’s MPL/SKY, are also standing out as relative successes.
Dorman previously suggested the concept of crypto “FAANG” stocks earlier this year, proposing the acronym “BACHELORS” for significant tokens. In his recent reflections, he has adapted this to “BARHEAPs,” incorporating emerging projects like PUMP, further emphasizing the evolving nature of the sector.
In closing, Dorman’s insights reveal that the cryptocurrency growth narrative in 2025 is far more complex than it appears at first glance. He warns against labeling the year a “bull market,” claiming it’s more akin to a narrow rally led by a few dominant players and select revenue-driven projects. “The reason this has been a hard bull market is because it’s barely even a good year for crypto, let alone a bull market,” he concludes, prompting a reconsideration of what constitutes a healthy and thriving cryptocurrency ecosystem.
